Looking good on paper financially while having poor cash flow is a common problem among business owners. This is especially true of startups and those operating on a limited budget. When determining the source of the cash flow problem, it often comes back to ongoing issues with accounts receivable management, debt management, and inventory control. Below are some tips for how to improve each of these areas. Accounts Receivable Management It doesn’t take long in business to learn that having…
With everything else you need to do to start a small business, dealing with taxes can seem overwhelming. Even so, it’s important to make wise tax decisions from your first days starting a business as you might not be able to change them later. You also should educate yourself on what the Internal Revenue Service (IRS) expects from you in terms of self-employment and payroll tax, as well as sales tax requirements from your state government. Below are three tax…
Creating and analyzing financial reports may not be the thing you enjoy the most about owning a business. Even so, these tasks are essential if you hope to enjoy long-term business success. Not only do these reports need to be error-free and easy to understand, but you need to work with them regularly to meet the financial goals of your business. Increase the Reliability of Your Financial Reports A financial report is only useful when it’s accurate. That means you…
Having business goals and objectives is essential for any company, because if you don’t know what you’re striving toward, you’ll never get there. But it’s even more important that the goals that you set for your business are really good ones, and that they’re not just the next logical progression of achievement. There are good goals, better goals, and best goals, and while you can’t always be striving toward the best goals, they are the ones you should keep in…
Everything we do is focused on the core belief that we succeed in life by helping others succeed. This letter is one complimentary piece of our intense planning and research effort throughout the year to help in your success. Feel free to share it with anyone you know who could benefit. Big Tax Changes for 2018: Changes in the tax law generally last only until the next time there is a change in the party in power. Whether you…
The short answer to this question is – no. However, it has really become increasingly difficult to obtain a small business loan, and to realize your dream of having a small business enterprise grow into a major one, which can be a source of pride and profit for years to come. The reason it has become so difficult to obtain a small business loan is that many of the criteria used by lenders have been tightened considerably in recent years,…
Every small business has to set up an accounting cycle in order to manage its financial transactions. The accounting cycle starts by establishing your accounting system for the period, and at the end of the accounting cycle, you’ll be ready to close the books on that period so you can prepare for the next one. Here’s what’s involved with setting up your small business accounting cycle. Develop a chart of accounts As part of your accounting and bookkeeping system requirements,…
Even though most people realize that it takes considerable work to launch a business, many still underestimate the sheer multitude of tasks they must complete before officially opening their doors. One common mistake is for entrepreneurs to rush to open their new business without first testing the market to determine if there is enough demand for what the company will offer. In fact, this is one of the leading reasons that more than 60 percent of new business owners must…
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